On August 21, 2018, Tejas Vending, LP, Advanced Computing Solutions LP and Lucky 7 Downloads LLC recently received a Private Letter Ruling (PLR No. 20170927081404) from the Texas Comptroller of Public Accounts.
The PLR responds to the following question in the following manner:
Question: Are electronic sweepstakes machines [such as those distributed by Tejas Vending, LP, Advanced Computing Solutions LP and/or Lucky 7 Downloads LLC] operated with a login ID considered coin-operated machines subject to the General Business License and Occupations Tax Permit requirements under Occupations Code Chapter 2153?
Ruling: Electronic sweepstakes machines operated with a login ID are not coin-operated machines subject to licensing and tax permit requirements under Occupations Code Chapter 2153.
This is an important advantage for business owners who are interested in operating legal sweepstakes machines in compliance with Texas law.
With recent raids on bars, convenience stores, and other businesses operating 8-liner machines for which payment is required, this PLR establishes that tax stamps are not required for properly-operated machines programmed to provide free sweepstakes distributed by Tejas Vending, LP, Advanced Computing Solutions LP and Lucky 7 Downloads LLC to promote the sale of music download gift certificates.
The path is clear. Tejas Vending, LP, Advanced Computing Solutions LP and Lucky 7 Downloads LLC are your sources for legal sweepstakes done right. Avoid other providers who throw caution to the wind.